Adventureland: Disney's Foreign Operations Case Study

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The eyes behind Walt Disney theme parks began when Walt Disney was young and had a particularly fond by animated cartoon shoots. He then became obsessed with the idea of a Disney theme park, but the Disney boards rejected his vision. Walt Disney opened up a new company to start in the Disneyland venture and got backings by selling films to TV networks, such as ABC. Disney was able to open up Disneyland and achieved many guests to the theme park, but accommodating services to these guests was a problem. The first Disneyland theme park suffered food shortages, ride maintenance issues, and an overflow of guests. However, Disney was able to get back on track and led Disneyland in Anaheim to an enormous success. Learning from their mistakes, the opening of Walt Disney World experienced success as well. From there, the company made moves to expand globally into Tokyo, Paris, Hong Kong, and later Shanghai. In Tokyo Disneyland, the attendance figure surpassed every year during the first 20 years of operation and holds the record for highest one-day attendance. However to avoid financial risk Disney negotiated a 45 year contract with Oriental Land that gives Disney 10 percent of admissions, 5 percent of food and merchandise sales, and licensing feeds, and control over many policy issues and in return Oriental Land holds all equity in the venture and Takashi, president of Oriental Land Company, to take control of the design, construction, and culture decisions. Leaving these decisions to Oriental Land Company allowed Disney to make easy culture accommodation decisions. The customers were happy and content However, the income received from commissions and licensing fees, Walt Disney realized they had made a mistake in not having an equity participation in the operation. With the next venture in Europe, Disneyland Paris was chosen due to tourism factors.

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